Want a Nexus One?  Sounds great, but be sure to keep it at least 121 days, or you'll be charged an early termination fee by both Google and T-Mobile.

Billed as an "Equipment Recovery Fee" on Google's end, canceling a two-year T-Mobile agreement prior to day 121 will cost you $350.  What's more, this is in addition to any fees charged on T-Mobile's end.  With their $200 early termination fee, the device will cost you a total of $550 in fees if canceled in the first four months.

So, to recap, here's the full termination fee schedule:

• Cancel within the first four months: $550 ($350 from Google, $200 from T-Mobile)
• Cancel between four months and eighteen months: $200 (T-Mobile only)
• Cancel between eighteen months and twenty-one months: $100 (T-Mobile only)
• Cancel between twenty-one months and the end of the contract: $50 (T-Mobile only)

Something sounds a bit fishy here.  Assuming the typical deal is in place, T-Mobile pays Google for each Nexus One sold on a two-year agreement.  If the subscriber cancels before a set date (I'm assuming 120 days in this case), T-Mobile recoups the money paid to Google (known as a "chargeback").  So, while one company does stand to lose money (and should be free to charge a reasonable termination fee), both demanding a payment seems a bit off.

Verizon's "Advanced Devices" ETF, Google/T-Mobile's $550 combo...is this on track to become the next industry trend?

Via Engadget